Nifty Total Returns Index

Nifty above 7,700 ! Surprised ?

The Total Returns Index, not known to many, is nothing but Nifty plus the total dividends announced by Nifty companies, which are assumed to be reinvested. Though not many are interested in dividends and are concerned about only in the rise in share prices, this is a surprise for them.

The Total Returns Index is currently above 7,700 (7,713 to be precise as on 1st Feb 2013), while the Nifty is below 6357, the all time high which it achieved in Jan 2008.

Nifty Total Returns Index

There is also Total Returns Index for Sensex which is currently at 26,230 and last time when we wrote about this index it was around 22,000. So what does this mean for a retail investor? Index investing better and that too investing in index ETFs like Nifty Bees, for a longer period of time, generates good returns along with the dividends announced.

Dividends play an important role in calculating your returns and hence before calculating your stock returns, check out how much dividends you have received to get the exact returns.